Jacksonville Daily Progress
The chief restructuring officer for the Lon Morris' bankruptcy estate is also working for another Chapter 11 company out of Collin County, court records show.
This is a roughly $5,000 a week gig for Dawn M. Ragan, 51, whose work for Lon Morris nets her roughly $12,000 every seven days, according to the fee structure requested for her work July 2 through Sept. 30 of this year. Ragan has been involved in one capacity or another with Lon Morris College's bankruptcy proceedings since May.
The Irving resident was formally appointed chief restructuring officer overseeing the Chapter 11 proceedings for Emission Solutions Inc, of McKinney on Thursday, according to documents filed in United States Bankruptcy District, Eastern District of Texas, Sherman Division.
In her paperwork, Ragan said she accepted this job because the debtor's former president was moving to California and she was the only other officer who could perform the task.
As the CRO, Ragan will be company's official representative with access to all bank accounts.
"Dawn Ragan … is fully empowered to transact all business and act on behalf of the company," states James D. Lapicola, sole director of Emissions Colution Inc. in court documents.
For Ragan, this involuntary Chapter 11 affair started Nov. 2, when she and the Austin company for which she works, Bridgepoint Consulting, were tentatively hired to start work on the bankruptcy case.
Because the company has no ongoing operations, little cash and few liquid assets, the game plan is for Ragan and other officials to try to free up, recover and sell, patents that are valued at $3 million, court records show. (It's not clear how figure was determined.)
The patents are presently licensed to a third party, according to court documents.
There was a possible conflict in the case when a U.S. Trustee involved with the case recently attempted to have Ragan removed as CRO. The trustee was concerned a proposed lender in the case and the lender's ex-husband, both proposed loaners, may have selected Ragan for their benefit, "rather than the debtor's creditors," court documents show.
However, while the judge declined to name Ragan a Chapter 11 Trustee in the case, he kept her on as chief restructuring officer.